10 DAY CHALLENGE
Starting point. Basic strategy meant for those starting near rock bottom.
DAY 1 - HOUSING
Everyone needs to live somewhere. Most will unwittingly choose between early retirement or conforming to societal expectations based on socioeconomic status. Keeping up with the Jones's is not a solid strategy in the early going. Quite the opposite actually.
One of the most significant barriers in making it off the bottom into early retirement (let alone Whale status), is the cost and size of one's living space. If your home is oversized or overly expensive, it can limit your potential for creating exponential wealth.
Call it "house poor".
If you're serious about this journey, consider your home nothing more than a place to shelter, sleep, cook, and store necessities. This perspective helps in understanding the financial implications of luxuries you may not need.
Evaluate Your Housing Situation
Critical assessment: On the first day of your financial independence journey, assess whether your current living situation supports your goal of early retirement.
First considerations:
Ideally, you want to live near your job and near the grocery store. The closer the better.
Area cost of living to salary ratio. Do you have to live in NY or SF? Make sure your salary is well worth those higher expenses. Do you like to live in small town America? Housing will certainly be cheaper but make sure you can earn a decent wage in your location or you may want to consider another town.
Finding accommodations that more appropriately align with your goals.
There are levels to downsizing. How much sacrifice one is willing to accept is an individual pursuit. What may be second nature to some will be difficult for others. Discipline and patience are key to making it work.
Do I need a house at all? Can I live in an apartment? Am I willing to live with roommate or relatives? Am I open to less conventional options such as living in an RV or van down by the river?
If you have a family, same principle. How many rooms does our family need? Are schools nearby? Can we work from home?
Mapping Your Commute: Plan routes from potential homes to work and grocery stores. Check walkability, biking, or public transport options, especially if you're considering reducing vehicle dependency on Day 2.
Done correctly, this step has the most potential for BIG savings. I personally went pretty extreme with this step. I sold my house and instead of signing on to a lease, I decided to live in my truck for six months during a northern winter. I can't recommend that option due to obvious safety reasons, but that's what I chose to do. Watching my bank account grow rapidly, I cemented the belief that all of this was actually going to work out. Following the voluntary vehicle living hardship, I moved into small apartments for a while and even spent some time in a spare bedroom of a relative. Not ideal, but it was nearly free and I was willing to deal with it to keep saving more toward my goal.
Even if moving isn't immediately feasible, engaging in this exercise can open your eyes to possibilities that align more closely with your financial goals. Keep in mind, housing choice carries a great deal of power in this journey.
Adjusting your living situation might take some time. Start working the angle.
10 day challenge